About This Chapter
Exchange & Trade Relationships - Chapter Summary
This chapter enables you to strengthen your understanding of exchange and trade relationships without setting foot in a classroom. Review fun lessons at home or on-the-go that cover U.S. trade policy, means of payment in exchange and trade, tariffs and much more. When finished, you will be ready to:
- Discuss the economics and politics of international trade
- Understand how nations benefit from specialization and gain from trade
- Define absolute advantage in trade, and discuss means of payment in trade
- Share details about U.S. trade policy and law
- Exhibit knowledge of international trade policy, strategic trade policies, international trade organizations and trade agreements
- Describe exchange rates, tariffs and quotas
- Explain how fiscal and monetary policies impact the exchange rate
- List ways imports and exports are affected by currency changes
Benefit most from this chapter by tailoring resources to your unique study needs. Access one, two or any number of lessons in any sequence you desire. Take lesson quizzes before, during or after reviewing the lessons to assess your knowledge of exchange and trade relationships. Get a broader review of this subject by taking the practice chapter exam. Expand your knowledge by submitting lesson topic questions to our experts.
1. The Economics & Politics of International Trade
We will discuss the economics & politics of international trade through the definition of open trade and its benefits and drawbacks. In addition, the ideas of competitive advantage and political patience will be shown as key indicators of global success.
2. Gains From Trade and the Benefit of Specialization
Explore one of the most widely accepted ideas in economics - the idea that nations benefit from specialization and exchange, reaping gains from trade.
3. Absolute Advantage in Trade: Definition and Examples
In this lesson, you'll learn what absolute advantage is and how to easily identify it within examples of international trade. In addition, you'll learn the important difference between absolute advantage and comparative advantage.
4. U.S. Trade Policy & Law
American industries depend upon the government for protection against imports and to promote domestic exports. In this lesson, you will be exposed to an overview of U.S. trade policy and law.
5. International Trade Policy & Strategic Trade Policies
Governments sometimes intervene in international trade. In this lesson, we'll examine the arguments against strategic trade policy and discuss the policy instruments used by governments to influence international trade flows.
6. International Trade Organizations and Trade Agreements
International trade organizations and trade agreements have enormous power in the global trade environment. In this lesson, you will learn about the roles of the GATT, NAFTA, and the World Trade Organization.
7. Tariffs and Quotas: Effects on Imported Goods and Domestic Prices
Explore what tariffs and quotas are and what effect they can have on the supply of imported goods. Find out how these two economic tactics can influence the prices you pay for many of the everyday items you may purchase.
8. Exchange Rate: Determination and Conversion Across Countries
Understand what exchange rates are and the different types that can be used by governments and countries. See how they operate and how the conversion process works across countries.
9. How Fiscal and Monetary Policies Affect the Exchange Rate
Discover how fiscal and monetary policy can affect the exchange rate and ultimately the amount of money it costs you to buy goods and services. Find out the three paths that both fiscal and monetary policy can travel to impact the exchange rate.
10. How Currency Changes Affect Imports and Exports
Learn about how currency changes can affect imports and exports. Find out how this affects you. Discover what happens when a dollar is strong compared to other currencies and what happens when it is weak.
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